Argentina | Automotive Outlook 2022

Summary

The automotive industry was one of the hardest hit sectors in 2020, but one of the strongest rebounding sectors in 2021. However, the shortage of dollars in the economy limits the possibilities of a sustained expansion of the sector. We estimate that a similar number of vehicles will be sold in 2022 as in 2021.

Key points

• Key points:
• The automotive sector grew the most of all industrial segments in 2021, helping GDP to reach pre-COVID-19 levels.
• Macroeconomic imbalances during 2021 increased the intention to consume vehicles, making them more attractive as an investment opportunity and as a safeguard of value.
• The loss of wage power measured in dollars increases the effort to purchase vehicles, whose sales have been on a downward trend since 2018.
• The recurrent shortage of dollars in the Argentine economy and the obstacles to foreign trade limit the possibilities of a sustained expansion of the automotive industry, dependent on imports of inputs.
• The outlook for 2022 is not so encouraging for the economy in general and for the automotive industry in particular. We forecast a level of automobile sales for 2022 similar to last year.

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